Urban Investment Dim Sum Bond issuance counter-cyclical increase

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On November 11th, Jin10 reported that in recent years, despite the relatively high cost of issuing overseas bonds, the issuance of City Investment Bonds (RMB-denominated bonds issued in Hong Kong) in the Primary Market has continued to rise against the trend. Industry insiders analyze that this is mainly due to the tightening regulation of domestic city investment bonds, which prompts city investment enterprises to raise funds through overseas bond issuance. However, with the gradual adjustment of the credit bond market in recent times, the yield spread between domestic and foreign city investment bonds in the Secondary Market has narrowed. Industry insiders said that the current City Investment Bonds still have allocation value, but under the background of tightened regulation, the issuance of City Investment Bonds in the Primary Market may be restricted, and caution should be exercised against liquidity risks.

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